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Enron Energy Dealing Company -Assignment
Enron Energy Dealing Company -Research paper
Business ethics are integral part of organizational performance and long-term growth. Empirical evidence shows that organizations that fall short of principles of business ethics stand great risk of destroying their reputation and subsequently careening down. Enron, an energy dealing company once had remarkably the best performance before the ghost of unethical business ethics imbued the organization. Consequently, the company became bankrupt and was forced to retrench 4000 employees (Ferrell et al., 2017). The company’s stock prices also plummeted, causing massive loss to shareholders. Central to this historical scandal were Enron employees and executives whose actions led to the bankruptcy of Enron Corporation and subsequently the dissolution of Arthur Andersen LLP, which was one of the largest accounting and auditing companies in the world. This paper explores the unethical behaviours in Enron Corporation by focusing on how organizational culture conjured up its bankruptcy. The subsequent section examines how different Enron staff— bankers, auditors, and attorneys— played roles that thrust the company to bankruptcy. Finally, the paper accentuates the role of the Chief Financial Officer (CFO) in the predicaments that befell Enron.
How did Corporate Culture of Enron Contribute to its Bankruptcy
One of the major mistakes that Enron Executives did was underestimating the power of its competitors to outperform it. There was an unhealthy ambience of pride in the organization marked by false assumption that Enron employees were resilient and had the efficacy to counterattack any potential risk (Prebble, 2010). Another egregious mistake that Enron committed was embroiling its organizational culture in miasma of making profits. The company adopted a compensation reward playbook to employees and executives, which was detrimental to the shareholder’s profit........GET A PLAGIARISM FREE COPY